American Electric Power Company, Inc. (AEP) is moving steadily forward in changing its generation fuel mix. With its 2.9% dividend, projected compound annual growth rate in earnings of 5-7%, low-beta counterweight, geographic diversity, and investment in both wires (infrastructure) and renewables, the company's operations add up to quietly rising returns investors often consider routine for utilities.
Yet, as the Pacific Gas and Electric experience (fires, fatalities, bankruptcy, and planned multi-day power outages) has shown, utilities do not always meet a good operational standard, so AEP's strong performance is worth investor consideration.